Bitcoin Selloff Has Bears in Charge

Bitcoin’s (BTC) price pullback from the recent highs above 8,500 looks like a short-term Bear market on the technicals.

The leading cryptocurrency fell to a 2-week low of 6900.995 earlier Saturday

The sell-off from the recent high of 8,507 had shown signs of exhaustion near 7,455, the 38% Fibo retrace of the rally from the June low at 5,755 Wednesday, raising prospects of a move higher to 8,000.

BTC did not find support s Thursday and the rejection signaled Bearish exhaustion and encouraging the Bears to push it down to 2-week lows.

As a result, BTC appears to have entered a short-term bear market. The price chart analysis shows the prices could drop further to 6887.3695 according to my work.

Currently, Bitcoin is trading at 6,995.0049, –430.12 or -5.79%, the market is closed.

BTC closed below the 100-day MA Thursday, adding scope to the signs of a short-term Bearish reversal; a Bearish crossover between the 5-Day and 10-Day MAs and a Southside break of the ascending trendline by the RSI and sending it below 50.00, Bearish territory.

The 100-Day MA had acted as Key resistance before it was taken out on 23 July. BTC rallied 800 on 24 July, boosting the 100-Day MA as a Key technical mark.

Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.